ONE price for the first half of a season and another for the rest could help achieve a more sustainable dairy industry, according to a consultant.
And viewing each month's milk production independently would help farmer's decision-making.
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"If Victoria is going to have a sustainable, competitive dairy industry it must try and control the cost of milk production," consultant John Mulvany said.
"The way it achieves that is by encouraging each individual farmer to produce milk according to the pasture and forage curve on their farm."
Mr Mulvany said his clients need a simple payment system that enables sensible decisions, and not cross-subsidisation between payment systems.
"For example, our Gippsland clients under the traditional (Murray Goulburn) system received $5.10-$5.15 a kg of milk solids (last season); our north east clients around about $5.65kg/MS," he said.
"And that's not equitable. There wasn't 50c/kg difference in costs across those two groups."
MG asked its suppliers for feedback on its milk price payment structure, which includes three payment systems - seasonal, traditional and domestic - as part of a scheduled review.
Ideally, each month's production should be seen independently, Mr Mulvany says, "so we're not linking the amount of production in certain months with the amount at other times.
"For example the (domestic incentive) payment ... links the payment (farmers) receive to May, June and July milk.
"Most farmers find it difficult to produce milk from December to June
... July to December there would be one price, and then it would go straight up for January to June for another price.
"Therefore there would be two fat prices, two protein prices, and a volume charge."
United Dairyfarmers' of Victoria president Kerry Callow said it was good the review included surveying farmers. A MG spokewoman said the review was on-going with significant supplier interaction and recommendations would be considered next year.